BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Mattel, Inc. (“Mattel” or the “Company”) (NASDAQ: MAT) securities between October 20, 2016 and April 20, 2017, inclusive (the “Class Period”). Mattel investors have until August 28, 2017 to file a lead plaintiff motion.
Investors suffering losses on their Mattel investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to firstname.lastname@example.org.
Mattel is a multi-national toy manufacturing company. The complaint alleges that Mattel, as well as certain officers and directors, violated the Securities Exchange Act of 1934.
On April 20, 2017, after-market hours, Mattel revealed its first quarter 2017 financial results, and reported that on a year-over-year basis its worldwide net sales and gross margins each dropped over 15%, and its operating loss grew more than 158% to $127.0 million from $49.1 million. Mattel's first quarter 2017 results were considerably lower than Wall Street projections and the Company's 15% net sales drop during the quarter was twice the 7.8% drop estimated by Wall Street analysts, and its reported first quarter 2017 gross margins were 520 basis points lower than expected Wall Street estimates.
On this news, Mattel stock dropped roughly 14%, or $3.42 per share, on heavy trading volume to close at $21.79 per share on April 21, 2017.
The complaint filed in this lawsuit alleges that throughout the Class Period, the Company made false and misleading statements and/or failed to disclose adverse information regarding Mattel's business and prospects, including that prior to and during the Class Period, Mattel's retail customers were loaded with very high levels of unsold Mattel product and consequently, Mattel was exposed to the increased risk that it would have to issue its retailers financial concessions (in the form of sales adjustments, discounts and promotions) to remove such surplus inventory, and the increased risk that Mattel would experience slower sales growth in upcoming periods. The complaint alleges that due to defendants' false statements and/or omissions, Mattel stock traded at artificially manipulated prices of over $33 per share during the Class Period.
If you purchased shares of Mattel during the Class Period you may move the Court no later than August 28, 2017 to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to email@example.com, or visit our website at http://www.howardsmithlaw.com.
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